Farm debt at commercial banks showed stabilizing signs at the end of last year, ag debt has increased for the first time since 2019, driven by higher real estate balance and non-real estate loans.
The Kansas City Federal Reserve says that while pullback in lending subsided, ag loan balances remain below the historic average. The Fed says that a relatively strong outlook for the farm economy this year will likely continue to support improvement in ag credit conditions.
A farm real estate specialist expects those values to stay firm for the next six months.
Randy Dickhut says that a recent farm in Indiana fetched more than $16,000 dollars an acre. He says that if supply stays moderate and demand strong, the market will be well supported throughout 2022.
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